US-China Trade War Talks Begin Again in January

China’s government said it has made plans with Washington for talks in January aimed at ending a tariff battle that threatens to depress global trade and more in Thursday’s Markets In Brief.

The two sides have “made specific arrangements for face-to-face meetings” and are talking by phone, said a Ministry of Commerce spokesman, Gao Feng. Gao gave no details.

Presidents Donald Trump and Xi Jinping agreed Dec. 1 to postpone more tariff hikes for 90 days while their governments negotiate over U.S. complaints Beijing steals or pressures foreign companies to hand over technology.

Trump agreed to postpone tariff hikes on $200 billion of Chinese imports planned for Jan. 1. Beijing responded by announcing a delay in a 25 percent duty on imported U.S. vehicles.

Preparations for talks have proceeded despite the Dec. 1 arrest in Canada of an executive of Chinese tech giant Huawei on U.S. charges related to possible violations of trade sanctions on Iran.

Companies and investors worry the dispute might depress global trade at a time of rising anxiety about signs economic growth might be slowing.

The two sides are maintaining “close communication,” said Gao.

MARKETS IN BRIEF

Consumer Confidence Tumbles in December

U.S. consumer confidence tumbled this month as Americans began to worry that economic growth will moderate next year. But consumer spirits are still high by historic standards.

The Conference Board, a business research group, said Thursday that its consumer confidence index fell to 128.1 in December, down from 136.4 in November and lowest since July.

The index measures consumers’ assessment of current economic conditions and their outlook for the next six months. Both fell in December. Consumers’ expectations for the future dropped to the lowest level since November 2016.

The December readings “still suggest that the economy will continue expanding at a solid pace in the short-term,” said Lynn Franco, the Conference Board’s senior director of economic indicators. “While consumers are ending 2018 on a strong note, back-to-back declines in expectations are reflective of an increasing concern that the pace of economic growth will begin moderating in the first half of 2019.”

For now, the U.S. economy is solid. Economic growth clocked in at a healthy 3.4 percent annual pace from July through September after surging 4.2 percent in the second quarter. At 3.7 percent, the unemployment rate is the lowest in nearly five decades.

But the U.S. stock market has dropped sharply since early October. Investors have plenty to worry about. The Federal Reserve has gradually been raising interest rates. The economic boost from year-old tax cuts is expected to fade in 2019. Global growth is sputtering. And the U.S. and China — the world’s two biggest economies — are locked in a trade war that threatens to disrupt global commerce.

Long-Term Mortgage Rates Dropped to 4.55% Average

U.S. long-term mortgage rates fell this week, offering a slight degree of relief to would-be homebuyers after the stock market has tumbled.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year, fixed-rate mortgage dipped to 4.55 percent from to 4.62 percent last week. Rates averaged 3.99 percent a year ago.

The average rate for 15-year fixed-rate loans dropped to 4.01 percent from 4.07 percent. Still, that average is above its 3.44 percent level a year ago.

Mortgage rates began to spike after President Donald Trump signed deficit-financed tax cuts into law last year, but rates have eased in recent weeks as stocks have sold-off and the interest charged on the 10-year U.S. Treasury note has tumbled.

The decline in mortgage rates could help boost home sales, which have stumbled this year as higher borrowing costs have worsened affordability.

“The negative headlines around the financial markets are concerning,” said Sam Khater, chief economist at Freddie Mac. “But the economy remains healthy, so the drop in mortgage rates should stem or even reverse the slide in home sales that occurred during the second half of 2018.”